Term Paper

Course name: Entrepreneurship

Course code: EPD3105
Submitted to
Lecturer
Mohammad Osman Gani
Faculty of Business Studies,
Bangladesh University of Professionals (BUP)

Submitted by
Group X

Name Roll

Date of Submission: 20th April 2022.

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 Business Plan
22nd May 2022

Company name
Street address 1
Street address 2
City, state, ZIP
Business phone
Website URL
Email address

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Confidentiality Agreement

The undersigned reader acknowledges that any information provided by Group X in this business plan,
other than information that is in the public domain, is confidential in nature, and that any disclosure or use of
same by the reader may cause serious harm or damage to us
Therefore, the undersigned agrees not to disclose it without express written permission from A

Upon request, the undersigned reader will immediately return this document to A

_
Signature

_
Name (typed or printed)

_
Date

This is a business plan. It does not imply an offering of securities.

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 Table of Contents

Confidentiality Agreement 3
I. Instructions: Executive Summary 5
Executive Summary 6
II. Instructions: Company Description 7
Company Description Worksheet 8
III. Instructions: Products & Services 9
Product & Service Description Worksheet 10
IV. Instructions: Marketing Plan 11
SWOT Analysis Worksheet 12
Competitor Data Collection Plan 14
Competitive Analysis Worksheet 15
Marketing Expenses Strategy Chart 17
Pricing Strategy Worksheet 19
Distribution Channel Assessment Worksheet 21
V. Instructions: Operational Plan 23
VI. Instructions: Management & Organization 25
Management Worksheet 26
Organization Chart 27
VII. Instructions: Startup Expenses & Capitalization 28
VIII. Instructions: Financial Plan 29
IX. Instructions: Appendices 31
X. Instructions: Refining the Plan 32
Now That You’re (Almost) Finished 34

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I. Instructions: Executive Summary
The Executive Summary is the most important part of your business plan. Often, it’s the only part that a
prospective investor or lender reads before deciding whether or not to read the rest of your plan. It should convey
your enthusiasm for your business idea and get readers excited about it, too.

Write your Executive Summary LAST, after you have completed the rest of the business plan. That way, you’ll
have thought through all the elements of your startup and be prepared to summarize them. The

Executive Summary should briefly explain each of the below.

1. An overview of your business idea (one or two sentences).

2. A description of your product and/or service. What problems are you solving for your
target customers?
3. Your goals for the business. Where do you expect the business to be in one year, three years, five
years?
4. Your proposed target market. Who are your ideal customers?
5. Your competition and what differentiates your business. Who are you up against, and what
unique selling proposition will help you succeed?
6. Your management team and their prior experience. What do they bring to the table that will
give your business a competitive edge?
7. Financial outlook for the business. If you’re using the business plan for financing purposes,
explain exactly how much money you want, how you will use it, and how that will make your
business more profitable.

Limit your Executive Summary to one or two pages in total.

After reading the Executive Summary, readers should have a basic understanding of your business, should be
excited about its potential, and should be interested enough to read further.

After you’ve completed your business plan, come back to this section to write your executive summary on the
next page.

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 Executive Summary
(Write after you’ve completed the rest of the business plan.)

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II. Instructions: Company Description

1. Company mission statement

Sheba is an application that helps consumers find ambulances and medical help in an easy, convenient way
during emergency situations and also to find specialized medical services and providers when needed. Our
mission is to provide quality, quick service, safety, and fast medical help in a friendly and professional
manner enabling patients and their family to find the best medical service in the quickest time possible.

2. Company philosophy and vision

Our business values honesty, integrity, community, understanding and fast service.
We plan to expand our business overseas and turn this app from a national service provider to an international
service provider so that we can save more lives and help more patients to get the best medical service within
their means and lead a healthy life.

3. Company goals
The goal of Sheba is to achieve ten million users at the end of a 5 year period. Cutting down on the arrival
times of ambulances and improving the overall efficiency of medical services is also a part of this.

4. Target market and customers

Our target market is healthcare technology and our target customers are those patients in need of medical
service or emergency medical care and their families.

5. Industry
The Bangladesh healthcare sector comprises hospitals, clinics, diagnostic centers, clinical trials,
outsourcing, telemedicine, and medical devices and equipment. It is a growing industry in need of new
services and innovations to cater to a growing need for good medical help at an affordable price. Our
project has pinpointed a niche market in this sector which is the need for efficient ambulance service and
easily available information on specialized medical services and doctors in accordance to certain price
ranges. Hence the application Sheba.

6. Legal structure
The structure of the business will start of as a partnership with private investors providing the primary starting
capital. The aim is to transition into a full corporation and become a publicly traded company later on in the
companies lifetime. But initially it will be a partnership.

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Company Description Worksheet
Sheba
Business Name

Help consumers find ambulances and medical help in an efficient, easy and convenient
Company way during emergency situations and also find specialized medical services and
Mission providers when needed.
Statement
Honesty, Integrity, Community, Understanding and Fast service.
Company
Philosoph
y/ Values

Expand our business overseas and grow this app from a national to an international
service provider.
Company Vision

● Achieve ten million users

● Cut down ambulance response times by half
● Work to remove the stigma from availing medical services
Goals & ● Building a comprehensive information network to help regular people.
Milestones

Target market: Healthcare technology

Target customers: patients in need of medical service or emergency medical care and
Target Market their families.
and customers

1. Maya
Industry/ 2. Tonic
Competitors
3. Digital Hospital

Partnership

Legal
Structure/
Ownership

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III. Instructions: Products & Services

1. Services: Our application is a medical service providing application which helps patients and their
families to find efficient ambulance service and specialized medical services and contacts of
doctors/hospitals according to their budget or income. To provide the service

2. The problem the service solves: In Bangladesh there is a huge need for efficient ambulance
service and easily available information on specialized medical services and doctors in accordance
to certain price ranges. The problem with the ambulance services in our country is very dire where
ambulances either cannot or are unable to reach patients on time, jeopardizing lives. There is also
the problem of finding good doctors for particular health problems within a specific budget. Our
app and service aims to solve these problems by connecting ambulances with patients quickly,
providing ambulances anywhere in Bangladesh 24/7, using GPS to help ambulances reach
destinations faster, and providing in-app information on all the hospitals, doctors and medical
services around the country arranged in order of the type of service and fees needed. We believe
this application will have a competitive advantage because as no app in our country came up with
providing both efficient ambulance service and qualified information on medical services around
the country, we will be operating in a niche market. However we also plan on improving and
expanding our services in future

3. Proprietary features that give us a competitive advantage: Sheba is an application based

around the concept of bridging the gap between suppliers and consumers in the field of medicine.

4. Price of service: The app itself will be free to download. The prices of the ambulance services will
be modelled using an algorithm to replicate prices charges by regular ambulance services.

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Product & Service Description Worksheet

Busine Sheba
ss
Name
Efficient ambulance service through GPS, information on all hospitals, doctors and medical
services around Bangladesh
Product/
Service
Idea

Find and get ambulances on time, find good hospitals, doctors, consultants within budget at
the tip of your finger
Speci
al
Benefi
ts
App users can rate hospitals/medical/doctor services in the app. They can also comment,
give feedback through the app which will help other patients to make decisions
Uniqu
e
Featur
es
The primary drawback is the stigma related to availing medical services in Bangladesh. This
is likely to cause trouble in the initial growth phases.
Limits
and
Liabilitie
s
The app will be designed by programmers in house. And available through Google play for
both android and iPhone.
Productio
n and
Delivery

The ambulance services will be contracted into being the suppliers while our platform will
work to give them extended reach.
Suppliers

Intellectu The app will be made in house so the company will be the sole owner of the IP. No special
al permits are planned.
Property
Special
Permits
The service that Sheba plans to provide is solar to Uber but for ambulances while also
striving to make a comprehensive list of the available medical services and doctors
Product/ including their specialties. There will also be a rating and review system to help the regular
Service patients make informed decisions by seeing the reviews and by cross examining prices.
Descriptio
n

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IV. Instructions: Marketing Plan
This section provides details on your industry, the competitive landscape, your target market and how you will
market your business to those customers.

1. Market research

There are two kinds of research: primary and secondary. Primary market research is information you gather
yourself. This could include going online or driving around town to identify competitors; interviewing or surveying
people who fit the profile of your target customers; or doing traffic counts at a retail location you’re considering.

Secondary market research is information from sources such as trade organizations and journals, magazines and
newspapers, Census data and demographic profiles. You can find this information online, at libraries, from
chambers of commerce, from vendors who sell to your industry or from government agencies.

This section of your plan should explain:

● The total size of your industry

● Trends in the industry – is it growing or shrinking?
● The total size of your target market, and what share is realistic for you to obtain
● Trends in the target market – is it growing or shrinking? How are customer needs or preferences
changing?

2. Barriers to entry

What barriers to entry does your startup face, and how do you plan to overcome them? Barriers to entry might include:

● High startup costs

● High production costs
● High marketing costs
● Brand recognition challenges
● Finding qualified employees
● Need for specialized technology or patents
● Tariffs and quotas
● Unionization in your industry

3. Threats and opportunities

Once your business surmounts the barriers to entry you mentioned, what additional threats might it face? Explain
how the following could affect your startup:

● Changes in government regulations

● Changes in technology
● Changes in the economy
● Changes in your industry

Use the SWOT Analysis Worksheet on the next page to identify your company’s weaknesses and potential threats, as
well
as its strengths and the potential opportunities you plan to exploit.

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SWOT Analysis Worksheet

Strengths Weaknesses Opportunities Threats

Product/
Service
Offering
Brand/ Marketing

Staff/HR

Finance

Operations/
Management

Market

Can any of your strengths help with improving your weaknesses or combating your threats? If so,
please describe how below.

Based on the information above, what are your immediate goals/next steps?

Based on the information above, what are your long-term goals/next steps?

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4. Product/service features and benefits

● Connects the ambulance services of individual hospitals through one app

● Reduces the time for ambulances to reach patients and hence lowers the risk in emergency situation

5. Target customer

Consumers:
● Age: Any age
● Gender: Any Gender 6. Key competitors
● Location: Anywhere in ● Income: Any income range
Bangladesh (initial) ● Occupation: Any occupation
● Education level: Basic education

As we are operating in a niche market there is supposedly no similar competition. However, apps like Maya, Tonic,
Digital Hospital which provide digital healthcare service have the potential to be our indirect competitors and may
take on our idea and use it to further improve their application and hence turn into our competitors.

Price

Benefits/Features

Size/profitability

Market strategy

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 Competitive Analysis Worksheet
For each factor listed in the first column, assess whether you think it’s a strength or a weakness (S or W) for your
business and for your competitors. Then rank how important each factor is to your target customer on a scale of 1 to
5 (1 = very important; 5 = not very important). Use this information to explain your competitive advantages and
disadvantages.

Competito Importance to
FACTOR M Competitor B Competitor C
rA Customer
e

Products

Price

Quality

Selection

Service

Reliability

Stability

Expertise

Company
Reputatio
n

Location

Appearance

Sales Method

Credit Policies

Advertising

Image

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7. Positioning/Niche

Now that you’ve assessed your industry, product/service, customers and competition, you should have a clear
understanding of your business’s niche (your unique segment of the market) as well as your positioning (how you want
to present your company to customers). Explain these in a short paragraph.

8. How you will market your product/service

In this section, explain the marketing and advertising tactics you plan to use.
Advertising may include:
● Online
● Print
● Radio
● Cable television
● Out-of-home
Which media will you advertise in, why and how often?

Marketing may include:

● Business website
● Social media marketing
● Email marketing
● Mobile marketing
● Search engine optimization
● Content marketing
● Print marketing materials (brochures, flyers, business cards)
● Public relations
● Trade shows
● Networking
● Word-of-mouth
● Referrals

What image do you want to project for your business brand?

What design elements will you use to market your business? (This includes your logo, signage and interior design.)
Explain how they’ll support your brand.

9. Promotional budget

How much do you plan to spend on the marketing and advertising outreach above:

● Before startup (These numbers will go into your startup budget)

● On an ongoing basis (These numbers will go into your operating plan budget)

Use the Marketing Expenses Strategy Chart on the next page to help figure out the cost of reaching different
target markets.

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 Marketing Expenses Strategy Chart

Target Market 1 Target Market 2 Target Market 3

One-
Time
Expense
s

Monthly or
Annual
Expenses

Labor Costs

Download the Annual Marketing Budget Template. Using the information you’ve gathered, create your annual
marketing budget.

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10. Pricing

You explained pricing briefly in the “Products & Services” section; now it’s time to go into more detail. How do
you plan to set prices? Keep in mind that few small businesses can compete on price without hurting their profit
margins. Instead of offering the lowest price, it’s better to go with an average price and compete on quality and
service.

● Does your pricing strategy reflect your positioning?

● Compare your prices with your competitors’. Are they higher, lower or the same? Why?
● How important is price to your customers? It may not be a deciding factor.
● What will your customer service and credit policies be?

Use the Pricing Strategy Worksheet on the next page to help with your pricing.

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Pricing Strategy Worksheet

Business Name

Which of the following pricing strategies will you employ? Circle one.

Cost Value Based Other:

Plus
Based on your
The costs of making/obtaining competitive
your product or providing your advantage and brand
service, plus enough to make a (perceived value)
profit
Provide an explanation of your pricing model selection.
Include strategy info on your major product lines/service offerings. List industry/market practices and any
considerations to be discussed with your mentor.

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11. Location or proposed location

If you have a location picked out, explain why you believe this is a good location for your startup.

If you haven’t chosen a location yet, explain what you’ll be looking for in a location and why, including:

● Convenient location for customers

● Adequate parking for employees and customers
● Proximity to public transportation or major roads
● Type of space (industrial, retail, etc.)
● Types of businesses nearby

Focus on the location of your building, not the physical building itself. You’ll discuss that later, in the Operations
section.

12. Distribution channels

What methods of distribution will you use to sell your products and/or services? These may include:

● Retail
● Direct sales
● Ecommerce
● Wholesale
● Inside sales force
● Outside sales representatives
● OEMs

If you have any strategic partnerships or key distributor relationships that will be a factor in your success, explain them
here.

If you haven’t yet finalized your distribution channels, use the Distribution Channel Assessment Worksheet on the
next page to assess the pros and cons of each distribution channel you are considering.

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Distribution Channel Assessment Worksheet
Distribution Channel 1 Distribution Channel 2 Distribution Channel 3

Ease of
Entry

Geographi
c
Proximit
y

Costs

Competitors
’
Positions

Management
Experience

Staffing
Capabiliti
es

Marketin
g Needs

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13. 12-month sales forecast

Download the Sales Forecast spreadsheet and use it to create a month-by-month sales projection.

If you’ve already made some sales, you can use those as a basis for your projections. If, like most startups, you
haven’t sold anything yet, you’ll need to create estimates based on your market research, your proposed marketing
strategies and your industry data.

Create two forecasts: a “best guess” scenario (what you really expect) and a “worst case” scenario (one you’re
confident you can reach no matter what).

Keep notes on the research and assumptions that go into developing these sales forecasts. Financing sources will
want to know what you based the numbers on.

After reading the Marketing Plan section, the reader should understand who your target customers are, how you
plan to market to them, what sales and distribution channels you will use, and how you will position your
product/service relative to the competition.

A SCORE mentor can help you complete your Marketing Plan tailored for your business. Find a SCORE mentor.

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V. Instructions: Operational Plan
This section explains the daily operation of your business, including its location, equipment, personnel and
processes.

1. Production
How will you will produce your product or deliver your service? Describe your production methods, the
equipment you’ll use and how much it will cost to produce what you sell.

2. Quality control
How will you maintain consistency? Describe the quality control procedures you’ll use.

3. Location
Where is your business located? You briefly touched on this in the Company Overview. In this section, expand on that
information with details such as:

a. The size of your location

b. The type of building (retail, industrial, commercial, etc.)
c. Zoning restrictions
d. Accessibility for customers, employees, suppliers and transportation if necessary
e. Costs including rent, maintenance, utilities, insurance and any buildout or remodeling costs
f. Utilities

4. Legal environment
What type of legal environment will your business operate in? How are you prepared to handle legal
requirements? Include details such as:

g. Any licenses and/or permits that are needed and whether you’ve obtained them
h. Any trademarks, copyrights or patents that you have or are in the process of applying for
i. The insurance coverage your business requires and how much it costs
j. Any environmental, health or workplace regulations affecting your business
k. Any special regulations affecting your industry
l. Bonding requirements, if applicable

5. Personnel
What type of personnel will your business need? Explain details such as:

m. What types of employees? Are there any licensing or educational requirements?

n. How many employees will you need?
o. Will you ever hire freelancers or independent contractors?
p. Include job descriptions.
q. What is the pay structure (hourly, salaried, base plus commission, etc.)?
r. How do you plan to find qualified employees and contractors?
s. What type of training is needed and how will you train employees?

Download the Job Analysis Worksheet and use it to help you answer the questions above.

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6. Inventory
If your business requires inventory, explain:

● What kind of inventory will you keep on hand (raw materials, supplies, finished products)?
● What will be the average value of inventory (in other words, how much are you investing in inventory)?
● What rate of inventory turnover do you expect? How does this compare to industry averages?
● Will you need more inventory than normal during certain seasons? (For instance, a retailer might need
additional inventory for the holiday shopping season.)
● What is your lead time for ordering inventory?

7. Suppliers
List your key suppliers, including:

● Names, addresses, websites

● Type and amount of inventory furnished
● Their credit and delivery policies
● History and reliability
● Do you expect any supply shortages or short-term delivery problems? If so, how will you handle them?
● Do you have more than one supplier for critical items (as a backup)?
● Do you expect the cost of supplies to hold steady or fluctuate? If the latter, how will you deal with
changing costs?
● What are your suppliers’ payment terms?

8. Credit policies
If you plan to sell to customers on credit, explain:

● Whether this is typical in your industry (do customers expect it)?

● What your credit policies will be. How much credit will you extend? What are the criteria for extending
credit?
● How will you check new customers’ creditworthiness?
● What credit terms will you offer?
● Detail how much it will cost you to offer credit, and show that you’ve built these costs into your pricing
structure.
● How will you handle slow-paying customers? Explain your policies, such as when you will follow up
on late payments, and when you will get an attorney or collections agency involved.

After reading the Operational Plan section, the reader should understand how your business will operate on a
day-to-day basis.

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VI. Instructions: Management & Organization
This section should give readers an understanding of the people behind your business, their roles and
responsibilities, and their prior experience. If you’re using your business plan to get financing, know that investors
and lenders carefully assess whether you have a qualified management team.

1. Biographies
Include brief biographies of the owner/s and key employees. Include resumes in the Appendix. Here,
summarize your experience and those of your key employees in a few paragraphs per person. Focus on the
prior experience and skills that have prepared your team to succeed in this business. If anyone has
previous experience starting and growing a business, explain this in detail.

2. Gaps
Explain how you plan to fill in any gaps in management and/or experience. For instance, if you lack
financial know-how, will you hire a CFO or retain an accountant? If you don’t have sales skills, will you
hire an in-house sales manager or use outside sales reps?

3. Advisors
List the members of your professional/advisory support team, including:
a. Attorney
b. Accountant
c. Board of directors
d. Advisory board
e. Insurance agent
f. Consultants
g. Banker
h. Mentors and other advisors

If they have experience or specializations that will increase your chances of success, explain. For instance, does
your mentor have experience launching and growing a similar business?

4. Organization Chart
Develop and include an organization chart. This should include both roles that you’ve already filled and
roles you plan to fill in the future.

After reading the Management & Organization section, the reader should feel confident that you have a qualified
team leading your business.

Use the Management Worksheet and Organization Chart on the next two pages to highlight your management team.

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Management Worksheet

Bio/s

Gaps in
Management
or Experience

Adviso
rs

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Organization Chart

TIT
LE

TIT TIT TIT

TIT LE LE LE
LE

TIT
LE TIT TIT
LE LE

TIT TIT TIT

LE LE LE

TIT TIT
LE LE

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VII. Instructions: Startup Expenses & Capitalization
In this section, detail the expenses involved in opening for business and how much capital you’ll need. (Do not
include ongoing expenses after your business opens; those are listed in the Financial Plan.) Estimating startup
expenses as accurately as possible helps you gather enough startup capital.

1. Start-Up Expenses
Download and complete the Start-Up Expenses template. In working on this Business Plan, you should
already have gathered most, if not all, of the information you need. In the body of this section, be sure to
explain all of the assumptions behind the figures. How did you come up with these expenses? If you’ve
secured or expect to secure loans, explain the source/s, amount/s and terms. If you’ve secured or expect to
secure investors, explain how much each investor will contribute and what percentage of ownership each
receives in return.

Be sure to include extra capital for unexpected expenses. Opening a new business almost always ends up
costing more than expected, and you need to be prepared. List this figure in the Start-Up Expenses
template under “Reserve for Contingencies.” How much should you set aside for contingencies? You can
talk to other business owners in your industry to get a ballpark figure. If you can’t come up with a figure
this way, a good rule of thumb is to set aside 20% to 25% of your total startup costs for contingencies.

2. Opening Day Balance Sheet

Download and complete the Opening Day Balance Sheet. Use it to detail the expected state of your
business finances on opening day. As with the Start-Up Expenses sheet, be sure to explain the assumptions
behind the figures.

3. Personal Financial Statement

If you are using the business plan to seek financing, include personal financial statements for each owner
and each major stockholder. The personal financial statements should detail each person’s assets and
liabilities outside of the business and their personal net worth. Investors and/or lenders typically expect
business owners to use personal assets to finance a startup, and they’ll want to see how much capital you
have available from your personal finances.

After reading the Startup Expenses & Capitalization section, the reader should know how much money is needed
to start the business and how well capitalized you are.

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VIII. Instructions: Financial Plan
Your financial plan is perhaps the most important element of your business plan. Lenders and investors will review
it in detail. Developing your financial plan helps you set financial goals for your startup and assess its financing
needs. Include the following:

1. 12-month profit & loss projection

Also known as an income statement or P&L, the 12-month profit and loss projection is the centerpiece of
your business plan. Download the 12-Month Profit and Loss Projection and fill in your projected sales,
cost of goods sold and gross profit. (Refer to the Sales Forecast you created in Section IV). Then list your
expenses, net profit before taxes, estimated taxes and net operating income.

Be sure to explain the assumptions behind the numbers in your P&L. Keep detailed notes about how you came
up with these figures; you may need this information to answer questions from potential financing sources.

2. Optional: 3-year profit & loss projection

A three-year profit and loss projection is not essential to a business plan. However, you may want to create
one if you expect your business’s financials to change substantially after the first year, or if investors or
lenders require it. Download the 3-Year Profit and Loss Projection template, and use it to create your
projection.

3. Cash flow projection

The cash flow statement tracks how much cash your business has on hand at any given time. Once your
business is up and running, you’ll want to keep close tabs on your cash flow statement. For now, however,
you’re creating a cash flow projection. Think of the cash flow projection as a forecast for your business
checking account. It details when you need to spend money on things such as inventory, rent and payroll,
and when you expect to receive payments from customers and clients. For example, you may make a sale,
have to buy inventory to fulfill the sale, and not collect payment from the customer for 30, 60 or 90 days.
The cash flow projection takes these factors into account, helping you budget for upcoming expenses so
your business doesn’t run out of money.

Download the 12-Month Cash Flow Statement and use it to create your projections.

4. Optional: 3-year cash flow statement

Depending on your needs and the purpose of your business plan, you may also want to include a 3-year
cash flow statement. If so, download the 3-Year Cash Flow Statement and use it to create your projections.
This is a much simpler document than the 12-month cash flow statement, but can still be useful in making
plans.

5. Projected balance sheet

A balance sheet subtracts the company’s liabilities from its assets to arrive at the owner’s equity. You
already created an opening day balance sheet in Section 1. Now, download the Balance Sheet (Projected),
and create a projected balance sheet showing the estimated financial condition of your business at the end
of its first year. The major difference between the two is that the projected balance sheet includes any
owner’s equity resulting from the business’s first year in operation. Lenders and investors may want to see
this projection.

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 6. Break-even calculation
The break-even analysis projects the sales volume you need in order to cover your costs. In other words,
when will the business break even? Download the Break-Even Analysis template and, using your profit and
loss projections, enter your expected fixed and variable costs. Adjust the categories to reflect your own
business.

You can even create a couple of different break-even analyses for different scenarios. For example, your
payroll costs will vary depending on whether you hire full-time employees or use independent contractors.
Creating different break-even analyses can help you determine the best option.

7. Use of capital
If you’re using the business plan to seek financing from lenders or investors, provide a breakdown of how
you will the capital and what results you expect. For example, perhaps you will use the money to buy new
equipment and expect that to double your production capacity.

After reading the Financial Plan section, the reader should understand the assumptions behind your financial
projections and be able to judge whether these projections are realistic.

A SCORE mentor can help you complete your Financial Plan tailored for your business. Find a SCORE mentor.

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IX. Instructions: Appendices
Don’t slow your readers down by cluttering your business plan with supporting documents, such as contracts or
licenses. Instead, put these documents in the Appendices, and refer to them in the body of the plan so readers can find
them if needed.

Below are some elements many business owners include in their Appendices.

1. Agreements (Leases, contracts, purchase orders, letters of intent, etc.)

2. Intellectual property (trademarks, licenses, patents, etc.)
3. Resumes of owners/key employees
4. Advertising/marketing materials
5. Public relations/publicity
6. Blueprints/plans
7. List of equipment
8. Market research studies
9. List of assets that can be used as collateral

You can also include any other materials that will give readers a fuller picture of your business or support the
projections and assumptions you make in your plan. For instance, you might want to include photos of your
proposed location, illustrations or photos of a product you are patenting, or charts showing the projected growth of
your market.

After reviewing the Appendices, the reader should feel satisfied that the assumptions throughout the plan are
backed up by documentation and evidence.

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X. Instructions: Refining the Plan
Modify your business plan for your specific needs, audience and industry. Here are some guidelines to help:

For Raising Capital from Bankers

Bankers want to know that you’ll be able to repay the loan. If the business plan is for bankers or other lenders, include:
● How much money you’re seeking
● How you’ll use the money
● How that will make your business stronger
● Requested repayment terms (number of years to repay)
● Any collateral you have and a list of all existing liens against your collateral

For Raising Capital from Investors

Investors are looking for dramatic growth, and they expect to share in the rewards. If the business plan is for
investors, include:
● Investment amount you need short-term
● Investment amount you’ll need in two to five years
● How you’ll use the money and how that will help your business grow
● Estimated return on investment
● Exit strategy for investors (buyback, sale or IPO)
● Percentage of ownership you will give investors
● Milestones or conditions you will accept
● Financial reporting you will provide to investors
● How involved investors will be on the board or in management

For a Manufacturing Business

● Explain the operations involved in manufacturing your product/s.

● What equipment is needed? What are the production/capacity limits of the equipment?
● What are the production/capacity limits of the proposed physical plant?
● Is specialized labor needed?
● What raw materials do you need for manufacturing? Are there any special requirements for storing these?
● What quality control procedures will you use?
● How will you manage inventory levels?
● What is your supply chain?
● Explain any new products you’re developing, or products you plan to begin developing after startup.

For a Service Business

● Explain your prices and the methods used to set them.

● What systems and processes will you use for ensuring consistent delivery of services?
● What quality control procedures will you use?
● How will you measure employee productivity?
● Will you subcontract any work to other businesses? If so, what percentage of work will be subcontracted?
Will you make a profit on subcontracting?
● Explain your credit, payment and collections policies and procedures.
● How will you maintain your client base and get long-term contracts?
● Explain any new services you’re developing or services you plan to add after startup.

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For a Retail Business

● List specific brands you plan to carry that will give you a competitive advantage.
● How will you manage inventory? What inventory management software will you use?
● What forms of payment will you accept? What payment processing service will you use?
● What point-of-sale software and hardware will you use?
● Explain your markup policies. Your prices should be profitable, competitive and in line with your brand.
● Initial inventory level: Find the industry average annual inventory turnover rate (available in the RMA
book). Multiply your initial inventory investment by the average turnover rate. The result should be at
least equal to your projected first year's cost of goods sold. If not, you may need to budget more for
startup inventory.
● What are your customer service policies?
● How will you handle returns and exchanges?
● Will your retail store also have an ecommerce site, or is one planned for the future?

For an Ecommerce Business

● Will you sell a physical product, a service, a digital product (such as eBooks) or some combination of
these?
● If you’re selling physical products, how will you brand and package them?
● Will you sell on your own website, online marketplaces (such as Amazon) or both?
● What technology providers and platforms will you use to run your ecommerce site?
o Web hosting service
o Web design service
o Shopping cart provider
o Payment processing service
o Fulfillment & shipping services
o Email marketing services
● Can the solutions you’ve chosen quickly scale up or down as needed?
● Where will you get your products? Will you manufacture them in-house, buy them from manufacturers
or use drop shippers?
● How will you handle returns and exchanges?
● What are your customer service policies? How will you provide customer service?
● Will you use any proprietary technology of your own and if so, what advantages does that give you?

For a Software or SaaS business

● What is your pricing structure? Will you use a free trial, “freemium” or paid business model?
● If you offer free services or a free trial option, how will you upsell customers to a payment model? What
percentage of customers are expected to become paying customers?
● Have you tested your software? Are any “early adopters” already using the product?
● How will you encourage long-term contracts in order to create recurring revenues?
● How will you manage rapidly changing markets, technologies and costs?
● How will you keep your company competitive?
● Will you use in-house developers or outsource this function?
● How will you provide customer support?
● How will you retain key personnel?
● Are you using any proprietary or exclusive software that will give you a competitive edge?
● How will you protect your intellectual property?
● What additional products or updates to current products are you planning after launch?

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Now That You’re (Almost) Finished . . .
Remember to go back, and complete the Executive Summary.

After you’ve filled out all the worksheets and executive summary, print them out and you have a business plan.
Work with a SCORE mentor to review and refine your plan.

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